Carlsberg As Shs A

Welcome to the Carlsberg's H1 2026 Interim Financial Statement. I'm Moritz, the course call operator. I would like to remind you that all participants will be in a listen-only mode and the conference is being recorded. The presentation will be followed by a question and answer session. You can register for questions at any time by pressing star and one on your telephone. For operator assistance, please press star and zero. The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Jacob Arup-Andersen, CEO. Please go ahead.

Thank you very much, operator. So good morning, everyone, and welcome to Carlsberg's half-year 2026 conference call. As said, my name is Jacob Arup-Andersen, and I have with me our CFO, Ulrike Fern, and Vice President, Investor Relations, Peter Kondrup. Before we get into it, let me just begin by summarizing the key headlines for the half-year. First of all, we delivered solid top line and solid earnings growth. We are delivering the BRITBIC synergies faster than expected. We're making strong progress on leverage reduction, and we're expanding our Pepsi partnership to many more markets. And we're narrowing our full year guidance for organic operating profit growth towards the upper end of our previous guidance range. Before I cover the key headlines for the group and regions, And before Rikke takes you through the financials and the full year outlook, I will let her explain the exciting reporting changes following the implementation of IFRS 18. So over to you, Rikke.

Thank you very much, Jakob. And please, everyone, turn to slide three for that. So as we told you in February, we have implemented IFRS 18 this year, and this is ahead of the mandatory adoption in 2027. And this is a highly complex change, but we have been able to do this thanks to the robustness and the quality and the depth of our data and systems. And for those of you who are not aware, IFRS 18 concerns the presentation of figures in the income and cash flow statements and to a much lesser extent, the balance sheet. And it is important to note up front that it's at the bottom line, i.e. net profit, net cash flow and total asset is unchanged. And for us and for most other companies, IFRS 18 does not correspond with our internally defined financial performance measures and KPIs. And therefore, we're introducing Carlsberg Performance Measures, or CPMs, which reflect our internal reporting and performance management. And this is in line with the requirements of the IFRS 18. But I do want to emphasize that the CPMs basically, with a few exceptions, reflect the way we've always looked at the business. So we took the first step at this already in our full year 2025 reporting in February when we provided restated management-defined performance measures, or MPMs. However, under IFRS 18, MPMs can only be used for P&L subtotals and totals and not for line items such as cost of sales or marketing or ratios such as return on invested capital. And therefore, we're choosing to call our adjusted figures CPMs. Last week, we sent out restated 2025 figures under IFRS 18 for full year and half year. And we also included the corresponding CPM figures for both periods. So we hope that that helped you preparing for our half one announcements now. So going forward, all P&L commentary on group and regional performance in announcements and presentations will be on CPM where these differ from IFRS 18 figures. And likewise, organic growth figures will be presented for CPMs only. In today's announcement, CPM bridges are presented in Note 1, and those bridges will be included in all half and full year announcements going forward as per IFRS 18. And details on the restatement of the 2025 figures reported in February to IFRS 18 are shown in Note 8. So let me first briefly explain the major changes following the adoption of IFRS 18, illustrated in the second and third column in the table on this slide, which show 2025 reported in February and the IFRS 18 restated figures. First of all, the structures and subtotals in the P&L have changed as the P&L is now split into operating, investing and financing sections. Secondly, there are some significant movements between the lines in the P&L, with the main ones being share of profit of associates, which has moved from above operating profit to below operating profit. And special items and other operating activities, net, they no longer exist, but are instead recognized in the relevant cost lines, mainly above operating profit. And trade loans have moved from other operating activities to other investing income and expenses, which is below operating profit. And effort gains and losses on operating assets, liabilities and transactions, bank fees and other financial fees have moved from net financial items to admin costs. And as a result of the IFRS 18 mandatory reclassifications, 2025 operating profits have been restated from 13.36 billion Danish kroner to 10.23 billion Danish kroner. and the reclassifications have no impact on net results, which is unchanged at 7 billion Danish kroner, as you can see here in the table. We've also included a few lines from the cash flow statement. As with the P&L, there are a number of movements between the lines, but the most significant one is the change of interest paid on external financing. This used to be included in cash flow from operating activities, but it's now presented in the cash flow from financing activities. And this means that free cash flow under IFRS 18 improved by 1.67 billion Danish kroner, but this amount is offset in cash flow from financing activities, and net cash flow is therefore unchanged. Now, zooming in on the CPM adjustments, and these are shown in the last two columns in the table. And the main adjustments relate to share of profit in associates, which is moved back into operating profit. integration, restructuring costs and impairment losses, which used to be accounted for in special items, are eliminated in CPM, as is the amortization of intangible assets recognized in the Britfic PPA. The CPM operating profit and net financial items differ slightly from the MPMs reported in February. And the reason for this is that we have decided to align our internal reporting regarding trade loans, bank fees and other financial fees with IFRS 18 to avoid unnecessary complexity between our internal reporting and external reporting. And the net impact of these are approximately 250 million Danish kroner but have no impact on net results or EPS. Then the small difference between 2025 adjusted net result and adjusted EPS MPM reported in February and the restated net profit and EPS CPM is due to certain special items, such as war-related costs in Ukraine and donations, which has been reclassified to operating costs, and some smaller tax adjustments related to one-offs. So now on slide four, where we've included the detailed bridge for half one 2026 from note one in today's announcement, explaining the movements from IFRS 18 to CPMs. Hopefully, this bridge will enable you to understand the moving parts. And if not, IR will be more than happy to help after this call. As I've emphasized a couple of times already, the CTM figures are in accordance with our internally defined management performance measures and KPIs. And with all of that, back to you, Jakob.